You are here: Mzansinews Tough year ahead for consumers
Economists have warned Mzansi consumers against taking more debt as this year promises to be a tough year for them.
South Africans have always been warned against living beyond their means and data shows that most people are in debt and some can’t pay their debts.
SABC News.com reported Stanlib Economist, Kevin Lings as saying: "Unfortunately we think that consumers did take on additional debt during the Christmas period including store credit, including credit card debt. We noticed that towards the end of the year various forms of consumer credit were starting to move up quite sharply, not just personal loans or unsecured credit."
Consumers in Durban
They say some of the challenges bezijongene nama consumers kunyaka ophelile sisekhona nakulo, 2013. Sebaxhwayise against taking more debt. Lamachallenges include, rising living costs, low savings and the tough labour market. Ukhukhula kwamaxabiso okudla, and increasing administered prices such as electricity are to blame.
Usomnotho owaziwayo, Lumkile Mondi of IDC speaking to SABC News.com said: “The consumer that has been saving for quite a while and has got an exposure at the JSE securities exchange, is in a pretty good position at the moment, because whether you've got unit trusts or through your other savings scheme that are re listed, you may find that they have grown quite beautifully in the past year given the fact that we have grown above 40 000 in our JSE securities exchange."
They have suggested that consumers take advantage of the lower interest rates.
By Siphiwo Nkonki